Report: Cambodia vulnerable to rising oil prices

PHNOM PENH, Oct. 30 (Xinhua) -- A sharp rise in the consumer price index (CPI) can be directly attributed to higher prices of gasoline, while Cambodia has been found to be extremely vulnerable to rising oil prices by the United Nations Development Program (UNDP), local press reported Tuesday.

Price hikes for goods and services led to a 4.47 percent jump in the CPI during July and September, as compared to the previous three months. The index includes the costs of food, beverages, tobacco, clothing and medical care, according to a report recently released by the Ministry of Planning's National Institute of Statistics.

Economist Sok Sina told the Cambodia Daily that the increased cost of gasoline has raised the price of transport and subsequently pushed up the price of imports, which will affect Cambodia's civil servants and its garment workers, two of the nation's lowest paid groups.

In its report "Overcoming Vulnerability to Rising Oil Prices," released on October 25, the UNDP warned that Cambodia is one of the most vulnerable nations in the Asia-Pacific region in regards to oil prices soaring on the international market.

Cambodia rated 22nd in the UNDP's Oil Price Vulnerability Index, which ranks countries in terms of their dependence on imported oil, behind only the Maldives and Vanuatu.

The three countries are the greatest at risk of detrimental impacts of increased oil prices as they have relatively low economic strength, lower economic performance and greater oil dependency, according to the UNDP report.

Oil prices in Southeast Asia have tripled in the last four years, and absorbing the growing price is a staggering issue for poor Southeast Asian countries, said Hafiz Pasha, UNDP Regional Director for Asia and Pacific.

Cambodian people are suffering from high gasoline prices, which are leading to sharp rises in the cost of meat, fish and vegetables, the Khmer Machas Srok newspaper reported.